METTAWA, Ill., June 06, 2022 (GLOBE NEWSWIRE) — Brunswick Corporation announced that (:BC) the Freedom Boat Club is expected to exceed 50,000 memberships this week across its 360 global locations, comprised of both corporate sites and of a continuously growing network of franchise partners. Freedom’s 50,000 memberships span more than 75,000 global members making up a growing, energetic and diverse community of boating enthusiasts. Freedom has become a catalyst for new and future generations of boating participation, empowering the entire industry.
Since Brunswick acquired Freedom in 2019, the company has more than doubled its memberships, locations and the number of boats in its fleet. Driven by organic growth and completed acquisitions of former franchise territories, even excluding synergies, Freedom’s revenue contribution to Brunswick is expected to double in 2022 compared to 2021 as it scales rapidly to achieve its goals. of 2025 and become much more important to Brunswick’s overall growth. and financial performance. The growth of company-operated locations has been accompanied by a continued expansion of franchise locations which still represent over 70% of all club locations.
“With a growing company-operated footprint and a network of talented and committed franchise partners who are committed to growing Freedom, we will expand our presence in existing markets and enter new markets around the world,” said said Brunswick CEO David Foulkes. “We believe this club model provides a high quality, convenient and differentiated experience, and has a long streak of growth. Over time, we intend to create even more value for our members and keep them in the Brunswick family and on the water for life.
The subscription nature of Freedom’s revenues and profits contributes to the growing impact of recurring revenue businesses, which also include parts and accessories (P&A) and repowering engine sales, on revenues and profits Brunswick Global. Recent Brunswick acquisitions have been heavily concentrated in this area, with recent Brunswick acquisitions RELiON and Navico both having a very strong aftermarket sales mix. Brunswick’s recurring revenue business already generates more than 40% of the company’s total revenue, with a goal to exceed 50% by 2025.
Based in Mettawa, Illinois, Brunswick Corporation’s leading consumer brands include Mercury Marine outboard motors; Mercury MerCruiser sterndrive and inboard sets; Mercury Global Parts and Accessories, including SmartCraft propellers and electronics; Advanced Systems Group, which includes industry-leading brands such as Simrad, Lowrance, C-MAP, B&G, MotorGuide, Attwood, Mastervolt, RELiON, Blue Sea Systems, CZone and systems integrators ASG Connect; Distribution of Land ‘N’ Sea, BLA, Payne’s Marine, Kellogg Marine and Lankhorst Taselaar marine parts; Mercury and Quicksilver parts and oils; Bayliner, Boston Whaler, Crestliner, Cypress Cay, Harris, Heyday, Lowe, Lund, Princecraft, Quicksilver, Rayglass, Sea Ray, Thunder Jet and Uttern boats; Network of nautical services, Freedom Boat Club and Boat Class. For more information, visit brunswick.com.
Certain statements in this press release are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations, estimates and projections about Brunswick’s business and, by their nature, address of questions that are, to varying degrees, uncertain. Words such as “may”, “could”, “should”, “expect”, “anticipate”, “project”, “position”, “intend”, “target”, “plan” , “seeks”, “estimates”, “believes”, “predicts”, “outlooks” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this [presentation/news release]. These risks include, but are not limited to: the effect of adverse general economic conditions, including the amount of disposable income available to consumers for discretionary spending; fiscal and monetary policy concerns; adverse capital market conditions; changes in exchange rates; higher energy and fuel costs; competitive pricing pressures; interest rate risk related to our debt; the coronavirus (COVID-19) pandemic and the emergence of variant strains; actual or anticipated cost increases, supply disruptions or defects in raw materials, parts or components we purchase from third parties, including due to pandemic pressures; supplier manufacturing constraints, increased demand from ocean carriers and transportation disruptions; manage our manufacturing footprint; adverse weather conditions, events related to climate change and other risks of catastrophic events; international business risks, geopolitical tensions or conflicts, sanctions, embargoes or other regulations; our ability to develop new and innovative products and services at a competitive price; our ability to meet demand in a rapidly changing environment; loss of key customers; absorb fixed production costs; risks associated with joint ventures that do not operate solely for our benefit; our ability to integrate acquisitions, including Navico, and the risk of associated disruption to our business; the risk that unexpected costs may be incurred in connection with the Navico transaction or the possibility that the synergies and value creation expected from the transaction may not be realized or not be realized within the expected time frame; our ability to successfully implement our strategic plan and growth initiatives; attracting and retaining a skilled workforce, implementing succession plans for key executives and executing organizational and leadership changes; our ability to identify, complete and integrate targeted acquisitions; the risk that strategic divestitures will not provide commercial benefits; maintain efficient distribution; risks relating to the ability of dealers and customers to access adequate financing; requirements for us to repurchase inventory; inventory reductions by dealers, retailers or independent boat builders; risks related to the Freedom Boat Club franchise business model; outages, breaches or other cybersecurity events involving our technology systems, which could affect manufacturing and business operations and could result in the loss or theft of information and associated remediation costs; our ability to protect our brands and intellectual property; changes in US sales policy and pricing; any impairment in the value of goodwill and other assets; product liability, warranty and other claims risks; legal, environmental and other regulatory compliance, including increased costs, fines and reputational risks; changes in income tax law or administration; manage our share buybacks; and the risks associated with some divisive shareholder activism. Additional risk factors are included in the company’s Annual Report on Form 10-K for 2021 and subsequent quarterly reports on Form 10-Q. Forward-looking statements speak only as of the date they are made, and Brunswick undertakes no obligation to update them to reflect events or circumstances after the date of this press release.